Energy independence: Cabinet okays cost, equity investment revision for HPCL Rajasthan Refinery
New Delhi, April 8
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved the revision of the HPCL Rajasthan Refinery Limited project cost from Rs 43,129 crore to Rs 79,459 crore and additional equity investment of Rs 8,962 crore by the Hindustan Petroleum Corporation Limited.
The total equity investment of HPCL after the increment will be Rs 19,600 crore, according to an official statement.
HRRL is a 9 million metric tonnes per annum (MMTPA) greenfield refinery-cum-petrochemical complex with 2.4 MMTPA petrochemical production capacity.
The project is being implemented by HRRL, a joint venture (JV) of HPCL and the Rajasthan government with equity stakes of 74 per cent and 26 per cent, respectively.
According to the CCEA, HRRL Refinery is a highly complex refinery with more than 26 per cent petrochemical product slate.
Together with the production of 1 MMTPA of petrol and 4 MMTPA of diesel, it would produce 1 MMTPA of polypropylene, 0.5 MMTPA of LLPDE (linear low-density polyethene), 0.5 MMTPA of HDPE (high-density polyethylene) and about 0.4 MMTPA of benzene, toluene, and butadiene.
"All these products are critical to our energy and industrial ecosystem in sectors like transportation, pharma, paints, packaging industries, etc. The project will lead to energy independence and reduce the import dependence of the petrochemical sector. The Scheduled Commercial Operation Date (SCOD) is July 1, 2026," a statement said.
According to the government, HRRL is an important project considering the growing energy needs and the petrochemical requirements of the country and speciality products production, thereby reducing the country's dependence on imports, which will result in saving foreign exchange.
Moreover, this project will also contribute towards the industrialisation of a backward area, the usage of locally available Mangala crude, and help in promoting India as a refining hub.
During the course of execution of this project, HRRL has generated employment opportunities of approximately 25,000 workmen deployed by various stakeholders engaged in the construction of the Refinery Units.
— IANS
Reader Comments
The project cost has nearly doubled from the original estimate. While the goals are noble, there must be strict oversight to ensure there's no further cost escalation and that public money is used efficiently. Accountability is key.
Great to see focus on petrochemicals! This will boost so many downstream industries - packaging, pharma, paints. Reducing import dependence in this sector is a game-changer for Make in India. 👏
25,000 jobs during construction is a big number! Hope the local youth in Rajasthan get proper skill training and long-term employment opportunities, not just temporary work. Development should be inclusive.
Using locally available Mangala crude is smart logistics. Building industrial capacity in backward areas can help balance regional development. The environmental impact assessment and mitigation plans must be robust, though.
The timeline seems ambitious. Hope the project doesn't face the delays that plague many large infra projects here. On paper, it looks excellent for energy security and industrial growth. Fingers crossed! 🤞
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